Kandivali, a suburb located in the northern part of Mumbai, is believed to date back to the Stone Age. Once a small village that was famous for mining the Malad stone, Kandivali has today one of the top suburban locations of Mumbai. The area has seen phenomenal growth over the past several decades, which has made it a preferred destination for real estate investment in Mumbai. While the area offers both under-construction and ready-to-move-in flats for potential investors and home buyers, the demand for the latter is relatively higher.
Some reasons that make investing in ready-to-move flats in Kandivali a better choice are explained briefly as follows.
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No Ambiguity About The Property
People investing in a ready-to-move flat do not need to worry about how it will change after the construction work is completed. Since the flat is ready for possession, investors can rest assured about getting what they have been shown. This minimises the risk of investors getting duped in terms of being promised one thing and ending up with something else entirely. Moreover, investors can check the various aspects of the flat for quality of construction and durability and then make an informed decision.
Investing in a ready-to-move flat eliminates the waiting period for buyers, which can help them save a significant amount. Since the construction is already complete, there are zero chances of the project getting delayed or, worse, getting stalled indefinitely. Buyers can relocate to their new flat almost immediately after the deal is closed, helping them save rent. Moreover, investing in such flats often means that the buyers do not have to arrange funds for a downpayment. They simply have to start paying the EMIs for the home loan, which can prove to be extremely convenient and stress-free.
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Better Understanding Of The Neighborhood
Buying ready-to-move flats in Kandivali proves beneficial in that the buyers get a clear understanding of the neighbourhood. They can verify the presence of various social and civic facilities offered in the area. Buyers can also gain an insight into the type of people inhabiting the area and the type of connectivity it offers to other parts of Mumbai city. Most importantly, they can ensure that all the amenities promised by the developer are available and functional so that they do not end up paying for services that are not being offered. This is not possible in the case of most under-construction properties as the area might not be fully developed, making it impossible for investors to access the extent of infrastructure or social development in the neighbourhood.
The government of India offers significant tax benefits to people investing in property. However, availing of these benefits is rather difficult in the case of properties that are still under construction. Investing in ready-to-move flats is relatively easier. Under section 80C of the income tax act, the principal amount of up to 1 lakh is deducted from the income for ready-to-move properties. Additionally, first-time home buyers can get a tax benefit of up to 1.5 lakhs on the interest paid on the loan for such properties. This deduction on the principal amount is not applicable for under-construction properties. Also, the government does not charge any GST on ready-to-move properties, which proves to be an additional benefit for people investing in such properties.
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Good Returns On Investment
Investing in ready-to-move flats ensures good returns on investment, especially for properties in well-developed areas like Kandivali. This is because even if the investors are not ready to move to the new flat immediately, they can earn a decent second income by renting out the flat. Given the proximity of Kandivali to major commercial hubs, there is a great demand for rental accommodations in the area. The average rental per month for the locality ranges between ₹24,399 and ₹69,600, with the average price being around ₹43,771which is pretty good. The area has experienced a Y-O-Y increase of around 6.5% in property prices, which further ensures a good return on investment for people buying ready-to-move flats in Kandivali in Mumbai.
Conclusion
Investing in property in Mumbai is a major decision, and with ready-to-move flats, the decision becomes easier for investors. With the aforementioned benefits, such flats prove to be a better option, especially for people buying a second home or seeking a profitable real estate investment option.
